Rich Lister Shesh Ghale partners with Accor on new Melbourne hotel
Financial Review Rich Listers Shesh Ghale and Jamuna Gurung have struck a deal with accommodation giant Accor to operate a new luxury hotel within their $500 million redevelopment on the former City Mazda dealership site near Melbourne’s Queen Victoria Market.
The 288-room hotel, due to open in 2023, will mark the entrance of the SO/Hotels and Resorts brand into Australia. The lifestyle chain combines fashion and art with live music events and DJs.
SO/Melbourne will occupy the upper levels of the high-rise office tower to be built on a 3900 sq m site at 386-412 William Street.
The Nepalese-born power couple, founders of the Melbourne Institute of Technology and worth $1.2 billion, according to the latest Financial Review Rich List, bought the site from property investor Michael Drapac for $16.2 million in 2009 with plans originally to build a university campus.
The buildings on the site, apart from their decorative facades, were demolished in 2018 to make way for a residential development.
However, Mr Ghale and Ms Gurung changed course again recently and decided to proceed with a 20,000 sq m office development instead, after witnessing the Melbourne apartment market cool.
“We looked at the site, then we looked at each other, and started questioning whether we were doing the right thing here,” Mr Ghale told The Australian Financial Review a year ago.
“We called our project management team the next day, and said we have to develop this as premium office instead,” he said.
The site, on the corner of Franklin and William streets on the northern edge of the CBD, is across the road from the Queen Victoria Market precinct undergoing substantial redevelopment and overlooks Flagstaff Gardens.
The development. known as 388 William. is being undertaken by MIT Group Holdings, the property arm of MIT.
It comprises two tapered glass towers – the tallest will rise 34 levels – across a a podium that will retain elements of the existing heritage building.
SO/Melbourne will offer 288 guest rooms and suites, some with outdoor terraces across levels 11 to 34. Amenities will include a club lounge, meeting room, restaurant, bar, skydeck and ballroom.
A-grade office space and co-working areas will feature from level 1 to level 10, with retail on the ground floor.
Savills acted as hotel adviser.
“The demand for quality luxury hotels is at an all-time high, so the timing is right to introduce Australia to the audacious and fashionable SO/Hotels brand,” Accor Pacific boss Simon McGrath said.
“SO/Melbourne will bring a bold and playful energy to Melbourne, blending the brand’s vibrant luxury services with the heart and soul of the destination. This flagship hotel will be the place to be seen to socialise, appealing to chic travellers and Melbourne’s savvy early adopters who are renowned for having their finger on the pulse.”
